HOUSE BILL REPORT

                  HB 1987

             As Reported By House Committee On:

            Trade, Economic Development & Housing

Title:  An act relating to the North American free trade agreement.

Brief Description:  Studying the North American free trade agreement.

Sponsors:  Representatives Wineberry, Quall, Sheldon, Conway, Shin, Morris, Valle, Campbell, Patterson, Veloria, Lemmon, Van Luven and J. Kohl.

Brief History:

  Reported by House Committee on:

Trade, Economic Development & Housing, March 2, 1993, DPS.

HOUSE COMMITTEE ON TRADE, ECONOMIC DEVELOPMENT & HOUSING

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 13 members:  Representatives Wineberry, Chair; Shin, Vice Chair; Chandler, Assistant Ranking Minority Member; Campbell; Casada; Conway; Morris; Quall; Schoesler; Sheldon; Springer; Valle; and Wood.

Minority Report:  Do not pass.  Signed by 1 member:  Representative Forner, Ranking Minority Member.

Staff:  Charlie Gavigan (786-7340).

Background:  The United States, Canada, and Mexico are negotiating a North American Free Trade Agreement.  Congress likely will be voting on the enabling legislation for the North American Free Trade Agreement this summer.  It appears that this agreement will significantly affect Washington State's economy, and may impact other Washington interests as well.

Summary of Substitute Bill:  A temporary committee on the North American Free Trade Agreement (NAFTA) is created to review NAFTA and analyze its impact on Washington State.  The committee is comprised of several agency directors and representatives of businesses and labor.  The agency directors are from the Office of Financial Management who chair the committee, the Department of Trade and Economic Development, the Department of Agriculture, the Department of Community Development, the Employment Security Department, the Department of Social and Health Services, the Department of Labor and Industries and the Department of Ecology. The other representatives, appointed by the governor, are four representatives of businesses involved in international trade, a representative of a bank involved in financing international trade, a representative of a transportation business involved in international trade, and two representatives of labor.  Staffing is to be done by the agencies on the committee.  The committee may create advisory committees and hold hearings to receive input from Washington citizens.

The committee must report to the governor and the Legislature by June 1, 1993.  The committee expires on December 1, 1993.

Substitute Bill Compared to Original Bill:  Eight non-agency members are added to the committee: four representatives of businesses involved in international trade, a representative of a bank involved in financing international trade, a representative of a transportation business involved in international trade, and two representatives of labor.

Fiscal Note:  Requested February 19, 1993.

Effective Date of Substitute Bill:  The bill contains an emergency clause and takes effect immediately.

Testimony For:  The North American Free Trade Agreement will significantly impact life in Washington State, particularly the economy and the environment.  It is important that these impacts be better identified and discussed.

Testimony Against:  None.

Witnesses:  Beth Burrows, Washington State Fair Trade Campaign (supports).